PANAMA CANAL AUTHORITY

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1 OFFICIAL Item No CN 10/1/98 1/1/01 PILOTAGE General: (1) Pilotage is charged at fees and is subject to the conditions contained in this tariff section. Pilotage services are furnished under the following general classes: Transit Pilotage, Port Pilotage, Offshore and Miscellaneous Pilotage, and Special and Additional Pilotage. Within each class any and/or all of the following subclasses may exist: Regular, Additional, Special, Delays, Aborted Pilotage Assignments and Unauthorized Movements Charge. (2) There will be no charge when the pilotage involves movements or services rendered for operational needs of the Panama Canal Authority. (3) Normally, pilotage is not charged to non-commercial vessels registered in the Republic of Panama that are under 65 feet in length and drawing six feet or less of water, plying only between the Canal entrances and ports in Balboa or Cristobal. These vessels must be operated by personnel licensed to operate vessels in Canal Waters. Transit Pilotage: (1) There is no charge for regular transit pilotage. Regular transit pilotage is considered to be that pilotage assignment which takes place when the transit begins in Canal waters, to include from an anchorage, mooring or dock, and the pilot s subsequent disembarkment within Canal waters, except in the case of an aborted transit as described in paragraph 3. Canal waters are defined as being between the Breakwater on the Atlantic side and the Sea Buoy on the Pacific side. A vessel which due to special conditions or deficiencies requires additional pilots to transit the Canal, shall be charged according to items or (2) For transits in which the pilot is requested or required to board or debark the vessel beyond the terminal points mentioned above, a charge will be assessed using Offshore Pilotage (Tariff Item ), plus Launch Service (Tariff Item ).

2 OFFICIAL Item No (3) If a vessel begins a transit, and through no fault of the Panama Canal Authority the transit is aborted, the vessel shall be charged for port pilotage (Tariff Item ), plus Launch Service (Tariff Item ) and Channel Fee (Tariff Item ), if applicable. For purposes of this section, an aborted transit has occurred when a transit is canceled anywhere between the point the vessel got underway and up until the vessel stops, as long as the vessel has not completed its transit of one set of locks. When a vessel transits beyond one set of locks, the vessel shall pay the tolls prescribed for a single passage through the Canal, in addition to any other charge incurred by the vessel. (4) If, after transiting the Canal, the pilot is requested or required to dock, moor, or anchor the vessel, the vessel shall pay the fee for Port Pilotage (Tariff Item ), plus Launch Service (Tariff Item ). Delay: When a pilot is assigned to a vessel and the vessel is not ready to move at or about the scheduled pilot time due to no fault of the Panama Canal Authority, the vessel shall be charged for delay in addition to Launch Service (Tariff Item ) if applicable Delay, Port Pilotage and Transit Grace Period: (1) The grace period for the application of the delay tariff in the case of movements to and from the ports is the following: (A) Four hours before the programmed lockage upon receipt of the notification of the time change at which the vessel is ready to move ("ready time"). (B) If the pilot is already on board, thirty (30) minutes counting from the moment the pilot notifies that the vessel is not ready to begin or continue its transit, and due to this delay, the vessel cannot make the programmed lockage. (2) The grace period before applying delay charges for port movements involves the following: (A) For movements towards the ports, notification of the time change in which the vessel deems it is ready to move ("ready time") with less than two hours before the programed pilot boarding time. (B) For movements from the ports, notification of the time change in which the vessel deems it is ready to move ("ready time"), with less than one hour before the programmed pilot boarding time. (C) When the pilot is on board, thirty minutes starting from the time the vessel is not ready to move. Major Delay. Transit delays which exceed 12 hours due to no fault of the Panama Canal Authority, shall be charged the following tariff, in addition to any other charges incurred Major Delay, in excess of 12 hours, per pilot assigned , Note: Delay shall not be charged in the case of vessels going to the Gatun Yatch Club.

3 OFFICIAL Item No Special and Additional Pilotage per assignment: Special / additional pilotage when requested or required, if it involves a pilot assignment, is charged as follows: With sufficient prior notice , With insufficient prior notice , Sufficient prior notice is considered to be, when service is requested prior to 0500 hours for jobs starting between 0701 hours that day and 0700 hours the following day. However, regardless of whether the insufficient prior notice tariff is applicable, a minimum of 2 hours prior notice is required. The duration of the assignment depends on the type of job PORT PILOTAGE (1) A vessel which uses port facilities (docks, moorings, and either anchorage) shall pay both in-pilotage and out-pilotage with the following exceptions: (a) No charge will be made when the out-pilotage involves an immediate transit of the Canal, (b) no charge will be made when a local vessel plying between ports of the Republic of Panama has received written permission from the Manager, Transit Operations Division, to operate the vessel without a Panama Canal Authority pilot on board, and (c) a vessel that is shifting from one berth, mooring or anchorage location to another in the same port, including shifting alongside, shall be charged for a single movement. (2) Charges for Port Pilotage are in addition to applicable special and additional pilotage service, and shall be assessed whether the same or another pilot performs the service. Port Pilotage charges cover the use of a single pilot. In the event that the movement requires the use of more than one pilot, the additional resources will be covered under a separate charge. Port pilotage delays are in addition to the applicable port pilotage rate. (3) Launch transportation for Port Pilotage service shall be charged under Tariff Item (4) Channel Fee for local call vessels shall be charged under Tariff Item

4 OFFICIAL Item No (5) Port Pilotage rates per foot of maximum draft, or fraction of a foot (six inches or over) are as follows: Under 20 feet feet and under 30 feet feet and under 40 feet feet and over /1/01 (6) Charge for Unauthorized Movement: A charge of 200% of the Port Pilotage (Tariff Item ) for a single movement shall be applied to vessels that proceed to make an unauthorized movement in Canal waters. Offshore and Miscellaneous Pilotage: CN 10/1/98 Offshore Pilotage: In addition to any aplicable pilotage charges, offshore pilotage shall be charged to vessels which require or request the pilot to board or debark outside the Atlantic Breakwater or outside Pacific Sea Buoy, at rates under Port Pilotage (tariff item ), plus Launch Service (tariff item ) /1/01 Dock and Sea Trial: Pilotage shall be charged for the services of each pilot assigned to a vessel during dock and sea trial, according to tariff item , plus Launch Service (tariff item ) /1/01 Mooring: A single pilotage charge shall be assessed when a vessel makes use of Panama Canal Authority s moorings, except when it relates to operational requirements associated with the transit, as defined by the Manager, Traffic Management and Admeasurement Section, according to tariff item , plus Launch Service (tariff item ). Special Pilotage Services: Hourly Pilotage Service when transit or lockage is not required: Minimum charge shall be for two hours from the time the pilot is on board the vessel (requested by the client) until the time movement is finalized; each half-hour or fraction thereof over the minimum shall be for one-half of the hourly rate, plus launch service (tariff item ) if applicable Note: The minimum charge for this service will be in addition to any applicable launch (tariff item ), port pilotage (tariff item ) or delay charges (tariff item ).

5 OFFICIAL Item No Tariff for exceeding ACP visibility requirements: (a) When, regarding visibility requirements on container vessels, a vessel notifies the Canal a minimum of 48 hours prior to its arrival that it intends to load exceeding Canal standards, additional costs are incurred. Vessels that exceed ACP visibility requirements will have the rate applied. If the vessel s transit is interrupted for reasons that are the vessel s responsibility, i.e. mechanical failure, then the rate will be charged again if additional pilot assignments are required , (b) When, regarding visibility requirements on container vessels, a vessel fails to notify or notifies the Canal less than 48 hours prior to its arrival that it intends to load according to IMO standards vice Canal standards, additional costs are incurred. Vessels that request transit exceeding ACP visibility requirements without the minimum 48-hour notification will have this rate applied. If the vessel s transit is interrupted for reasons that are the vessel s responsibility, i.e. mechanical failure, then the rate under item will be charged in addition to this rate if additional pilot assignments are required , Note: If the condition of exceeding ACP visibility requirements is discovered, or if the notification to transit exceeding these requirements is received less than 48 hours before arrival, the vessel shall be charged 8,000 in addition to delay and other applicable charges. In the case of a delay attributable to the vessel that makes necessary the utilization of additional resources, another charge shall be made according to item

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